Jefferson reported a $29.3 million operating loss in the nine months ended March 31
The Philadelphia-based health system's revenue was $11.3 billion.
Thomas Jefferson University had a $29.3 million operating loss in the nine months that ended March 31, compared to a $41.6 million loss in the same period a year ago, the nonprofit health system reported to bondholders Thursday.
The Inquirer adjusted last year’s reported results to include Lehigh Valley Health Network, which Jefferson acquired last August. That deal expanded Jefferson’s footprint to 32 hospitals and marked its entry into Northeastern Pennsylvania.
The health system has been climbing out of a financial hole established in the first quarter of fiscal 2025, when it had a $90.4 million operating loss, including results from Lehigh.
In the subsequent two quarters, Jefferson has logged an operating profit of $61 million, resulting in the nine-month loss of just under $30 million.
Jefferson’s operating results include investment income, while most competitors follow different accounting rules that include investment income elsewhere.
Total revenue at Jefferson was $11.3 billion in the first nine months of fiscal 2025, up 6.6% from the combined results of Jefferson and Lehigh in the same period last year.
Among expenses, the system saw a 16% increase in payments for insurance claims at Jefferson Health plans. By contrast, revenue from insurance premiums declined by about 1%. The insurance business is mostly Medicaid.
Another notable trend is a slowdown in the bill collecting at the legacy Jefferson businesses. At the end of March, Jefferson had 64 days in what are called accounts receivable, up from 50.1 at the end of June. Those figures at legacy Lehigh were 40.5 in March and 42.1 in June.